Mango Markets DAO Proposes Settlement Offer to US SEC
Mango Markets DAO, responsible for the Solana-based decentralized exchange (DEX), has put forth a proposal to settle with the U.S. Securities and Exchange Commission (SEC) regarding alleged violations of U.S. securities laws.
The settlement offer, which has garnered over 106 million votes in favor, includes a $223,228 fine to be paid from the DAO’s treasury, along with the destruction of all MNGO tokens, cessation of token-related activities in the U.S., and seeking to be delisted from exchanges. This proposal aims to allow the DAO to address the SEC’s allegations without admitting guilt.
Background and Challenges Faced by Mango Markets
Since October 2022, Mango Markets has been grappling with challenges stemming from a significant breach that resulted in losses exceeding $100 million. The breach, due to trader Avraham Eisenberg’s exploitation of the platform, has led to the proposed settlement with the SEC.
Following the incident, Eisenberg faced criminal charges and was found guilty of fraud and manipulation in April 2023. In response to the settlement proposal, the MNGO token witnessed a 5.3% increase in value initially, but has since experienced a sharp decline, losing over 91% of its worth due to ongoing legal pressures.
Despite reaching an all-time high of $0.50 in September 2021, the MNGO token has been on a downward trend. The DAO’s emphasis on settling to avoid prolonged litigation and controversy underscores its willingness to move forward, pending the SEC’s acceptance of the terms.
Implications of the Settlement Proposal
The proposed settlement signifies Mango Markets DAO’s commitment to addressing regulatory concerns and seeking resolution with the SEC. By proactively proposing terms to settle allegations, the DAO aims to chart a path forward that allows for closure on past issues and a focus on rebuilding trust within its community and the broader market.
